Embed Size (px)
Citation preview
Ashmore Group plc
Investor presentation
16 June 2017
www.ashmoregroup.com
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Agenda
2
9.30am Mark Coombs
9.45am Jan Dehn
10.30am Alexis de Mones, Robin Forrest,
Andy Brudenell
11.15am Break
11.30am Christoph Hofmann
12.00pm Tom Shippey
12.15pm Tom Shippey
12.45pm Q&A
Ashmore today
Strong fundamentals & opportunities across Emerging Markets
Investment processes deliver long-term outperformance
Growth potential from raising allocations
Diversification through intermediary business
Local network accesses rapidly-growing markets
Robust and flexible business model
Ashmore today
Mark Coombs, Chief Executive
3
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Focused Emerging Markets specialist with strong
performance and flexible business model
4
• Founded in 1992
• Three-phase strategy to capture benefits of Emerging Markets growth
• Scalable operating platform
- AuM of USD 55.9bn (as at 31 March 2017)
- eight Emerging Markets investment themes
• Active, valued-based investment philosophy delivers consistent
outperformance for clients across market cycles
• High-quality diversified global client base
• Robust and flexible business model
- interests aligned through remuneration policy and equity ownership
- cost model and discipline delivers high EBITDA margin
- cash generation and strong balance sheet support dividend policy
Attractive long-term returns in Emerging Markets
100
600
1,100
1,600
2,100
2,600
3,100
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Index 1
992=
100
EMLIP Net EMBI GD SP 500
Cumulative monthly returns since October 1992
Source: Ashmore, Bloomberg, JP Morgan
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Outperforming Underperforming
AuM outperforming versus benchmark,
gross 1 year annualised
Delivering strong investment performance for clients
5
AuM outperforming versus benchmark,
gross 3 years annualised AuM outperforming versus benchmark,
gross 5 years annualised
Data as at 31 March 2017
Qualifying AuM has a relevant performance benchmark and a track record over the respective time period
71%
100% 100% 100%
71%
100%
91%
0%
20%
40%
60%
80%
100%
Exte
rnal
Local
Corp
ora
te
Ble
nd
ed
Eq
uitie
s
Mu
lti-asset
Gro
up
66%
100%
52%
88% 85%
100%
82%
0%
20%
40%
60%
80%
100%
Exte
rnal
Local
Corp
ora
te
Ble
nd
ed
Eq
uitie
s
Mu
lti-asset
Gro
up
57%
100%
87%
100% 100% 100%
86%
0%
20%
40%
60%
80%
100%
Exte
rnal
Local
Corp
ora
te
Ble
nd
ed
Eq
uitie
s
Mu
lti-asset
Gro
up
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Consistent three-phase strategy to capitalise on Emerging
Markets growth trends
6
• Establish investment processes and asset classes
• Provide access to Emerging Markets and their rapid development opportunities
• Increase developed world investor allocations
• Establish differentiated Emerging Markets investment themes and sub-themes
• Diversify AuM by client location and client type (institutional and retail)
• Develop new product structures and capabilities
• Source capital from institutional investors, EM to EM
• Build network of local asset management platforms to manage domestic capital
1. Establish Emerging Markets asset class
2. Diversify developed world capital sources and themes
3. Mobilise Emerging Markets capital
• Institutional investors underweight EM
• Index representation is low
• Ashmore recognised as a strong specialist EM manager
• Ongoing diversification of investment themes and client base
• Retail business growing
• New products performing well , e.g. short duration
• 34% of AuM sourced from Emerging Markets
• Rationalised network to focus on higher growth opportunities
• Capacity to consider new local markets
Ashmore today
Emerging Markets
Jan Dehn, Head of Research
7
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Long-term growth opportunity is strong and underpinned by the EM/DM convergence trade
- GDP per capita in Emerging Markets is rising rapidly but is still 35 years behind Developed Markets
• A powerful tactical opportunity has emerged as QE headwinds abate
- asset prices inflated in Developed Markets
- Emerging Markets prices impacted and growth slowed, but fundamentals held up extremely well
• Emerging Markets value proposition is extremely strong
- attractive real yields, cheap currencies and equity markets geared to accelerating GDP growth
- returns likely to play out over multiple years
• Risks to the positive outlook for Emerging Markets
- systematic, idiosyncratic and external (DM)
• Active management is essential
- events in Developed Markets cause price reactions but no impact on fundamentals in Emerging Markets
The Emerging Markets outlook is very attractive
8
Page 9
Page 10
Pages 11-17
Page 19
Page 18
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Ashmore, IMF
Emerging Markets are increasingly important
9
• EM’s share of world GDP is high (58%) and rising
• Yet EM has only a small proportion (20%) of the
world’s debt
• Majority of the world’s population (87%) resides in
EM and has the potential to become wealthier
This means that the well-established EM/DM
convergence trade has a lot further to run
Convergence trade
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18f
20
20f
20
22f
Emerging Markets Developed Markets
1980
EM = US$1,500
DM = US$10,100
2016
EM = US$11,200
DM = US$47,400
GDP per capita, rebased 1980 = 100
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Ashmore, Bloomberg
QE hurt EM local markets, but change is evident
10
• Capital was withdrawn from Emerging
Markets to chase QE trades in the
developed world, e.g. long USD
• Emerging Markets responded with
significant macro-economic adjustments
and reforms
• USD strength is now harming the US
economy and weaker USD policies are
being pursued
• Stronger EMFX starting to reflect cyclical
recovery
Reducing QE influence
50
60
70
80
90
100
11090
100
110
120
130
140
150
160
170
180
190
2010 2011 2012 2013 2014 2015 2016
Combined balance sheets of four QE central banks (lhs, indexed Dec 2010=100)
USD-EMFX (rhs, indexed Dec 2010=100)
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Bloomberg, JP Morgan, Ashmore
There is plenty of value in Emerging Markets yields
11
Nominal bond yields (%, with duration in brackets)
• EM yields are comparable to those
prevailing before the global financial crisis
• QE and related policies in DM have
pushed asset prices in those markets into
bubble territory
• Relative value is skewed strongly towards
Emerging Markets
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
Fe
d funds
Germ
any 5
yr
(4.8
)
Germ
any 1
0yr
(9.2
)
US
5yr
(4.7
)
US
10yr
(8.8
)
EM
ind
ex-w
eig
ht yie
ld (
5.2
)
Change in yield/rate since end 2006 (%) Yield/rate today (%)
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Ashmore, BIS
Real exchange rates are extremely competitive
12
EM real effective exchange rates since 1994 • EM currencies are at attractive levels and will
benefit from weak USD policies
• But there will also be impetus from strong
and improving EM fundamentals
- EM countries will attract flows from
underweight investors
- financial conditions will ease after an
imposed period of tightening
- GDP growth will continue to pick up
- spreads will narrow, reinforcing the trend
• Biggest risk is US Border Adjustment Tax
85
90
95
100
105
110
115
120
125
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
EM REER (GBI weighted) US REER
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: IMF, Ashmore
The Emerging Market growth premium has been rising for more
than a year despite tight financial conditions
13
Real GDP growth (%) • While EM GDP growth slowed from 2011, the
premium over DM growth never fell below
two % points
• Significant tailwinds now delivering
accelerating EM GDP growth
• Developed world continues to face structural
growth impediments:
- high debt levels
- unfavourable demographics
- weak and falling productivity
- no reforms
- risk of protectionism
0
1
2
3
4
5
6
7
8
2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e 2021e 2022e
GD
P g
row
th (
%)
Developed markets Emerging Markets EM growth premium
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: BAML, Ashmore
High yields are not due to credit stresses
14
High yield corporate default rates • EM corporates outperforming DM corporates
• Diversified universe, e.g. 51 countries in the
CEMBI Broad Diversified index
• Active management of FX risks by EM
corporates
• Sovereign support can be a positive factor
0
2
4
6
8
10
12
14
16
18
20
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Defa
ult r
ate
(%
)
US HY EM HY
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Ashmore, JP Morgan, MSCI
Emerging Markets performance turned around sharply in
2016 and so far 2017 has been even better
15
• Emerging Markets asset prices have
strong momentum, supported by solid
fundamentals
• This is a challenge for underweight
investors, still backing QE trades and
facing a second year of significant
underperformance
Strong performance, significantly better than DM asset classes
-10%
-5%
0%
5%
10%
15%
20%
25%
Local curr
ency b
onds
Exte
rnal debt
Corp
ora
te d
ebt
3-5
yr
US
T
7-1
0yr
US
T
EM
FX
US
D in
dex (
DX
Y)
EU
RU
SD
US
DJP
Y
EM
equitie
s
S&
P 5
00
2016 2017 YTD
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: BAML, Ashmore
EM inflation is falling so real yields are very attractive
16
EM inflation and nominal yields • EM central banks increasingly target inflation
and pursue orthodox monetary policy
• Many EM countries are commodity importers
• Nominal yields are at pre-global financial
crisis levels, and real yields are extremely
attractive
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GBI-EM GD Weighted CPI inflation (% yoy) GBI-EM GD nominal yield (%)
6.8%
4.1%
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: MSCI, Ashmore
Brighter growth outlook supports equity outlook
17
40
50
60
70
80
90
100
110
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EM vs DM real growth premium (%, lhs) MSCI EM vs DM total return (indexed Dec2010=100, rhs)
• Earnings drive equity performance in the long run
• As EM GDP growth accelerates and re-
establishes a premium over DM, equities should
continue to outperform
Relative EM equity performance and GDP growth premium
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
2012 2013 2014 2015 2016 2017
5y5y nominal (%)
5y5y break even (%)
(0.50)
0.00
0.50
1.00
1.50
2.00
2012 2013 2014 2015 2016 2017
5y5y real yield (%)
Source: Bloomberg, Ashmore
Do Fed hikes pose a risk to EM?
18
Taper
tantrum
Inflation
re-pricing
until Trump
Oil price
rebound
• EM usually underperforms before Fed hiking cycle starts
and performs strongly after it has begun
• EM is vulnerable when real rates rise very quickly, as in
2013
• Most recent US curve re-pricing has been led by higher
inflation expectations
• Inflation expectations likely to rise further with Fed at
negative policy rates, fiscal stimulus and full employment
• Weak underlying growth, low productivity and large Fed
balance sheet reduce risk of sharply rising real rates
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Bloomberg, Ashmore
12-month returns after +10pts VIX spikes
Buying volatility-driven weakness in EM delivers alpha
19
Date of VIX spike Trigger event
Apr 94 Fed hikes
Oct 97 Asian crisis
Aug 98 Russian crisis
Oct 00 Fear of slowing US economy
Sep 01 9/11
Jul 02 Fear of slowing US economy
Jun 06 Hike triggers recession fears
Aug 07 BNP Paribas gates funds over sub-prime losses
Sep 08 Lehman
May 10 Greece
Mar 11 Japan earthquake
Aug 11 US debt ceiling and Eurozone crisis
Oct 14 Rate hike fears
Aug 15 Fed hike fears
Jun 16 Brexit
Annualised return External debt
(EMBI GD)
Corporate
debt
(CEMBI BD)
Local
currency
bonds
(GBI EM GD)
Equities
(MSCI EM)
Excess return from
active timing (bps) +174 +295 +335 +462
Active timing
return (%) 11.1% 10.5% 10.6% 7.2%
Passive timing
return (%) 9.4% 7.5% 7.3% 2.6%
Years of index 23 15 14 23
Investment processes
Alexis de Mones, Sovereign fixed income
Robin Forrest, Corporate debt
Andy Brudenell, Frontier equities
Portfolio Managers
20
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Institutional team-based investment processes
21
External Debt
(US$12.9bn)
Local Currency
(US$13.5bn)
Corporate Debt
(US$5.5bn)
Equities
(US$3.1bn)
Alternatives
(US$1.4bn)
Overlay/
Liquidity
(US$4.8bn)
Global Emerging
Markets
Sub-themes
• Broad
• Sovereign
• Sovereign,
investment grade
• Short duration
• Bonds
• Bonds (Broad)
• FX
• FX+
• Investment grade
• Broad
• High yield
• Investment grade
• Local currency
• Private Debt
• Short duration
• Global EM Value
• Global Small Cap
• Global Frontier
• Global Equity
Opportunities
• Global equity
• Private Equity
• Healthcare
• Infrastructure
• Special Situations
• Distressed Debt
• Real Estate
• Overlay
• Hedging
• Cash Management
Blended Debt
(US$13.6bn)
• Investment grade • Blended debt • Absolute return
Regional / Country
focused
Sub-themes
• China
• Indonesia
• Latin America
• Asia
• Africa
• China
• India
• Indonesia
• Latin America
• Middle East
• Saudi Arabia
• Andean
• Asia
• India
Multi-Asset
(US$1.1bn)
• Global
AuM as at 31 March 2017
Fixed income investment process
Alexis de Mones, Robin Forrest
Equities investment process
Andy Brudenell
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: BIS, BofAML, World Federation of Exchanges, MSCI, JP Morgan
Consistent investment approach
22
• EM fixed income and equity markets are inefficient
- benchmark indices are unrepresentative of the
investment opportunity
- active management is critical
• Ashmore’s value-based philosophy
- adds risk when markets have been oversold relative to
fundamentals
- deep understanding of market liquidity
- delivers long-term outperformance across market cycles
• Team-based investment processes
- 78 investment professionals
- no individual manages funds, not a star culture
External sovereigndebt
Local currencysovereign debt
External corporatedebt
Local currencycorporate debt
Equities
Mkt cap in benchmark Mkt cap not in benchmark
USD 0.8trn
48% in benchmark
USD 7.0trn
9% in benchmark
USD 2.5trn
14% in benchmark
USD 8.0trn
2% in benchmark
USD 24.5trn
18% in benchmarks
Large EM investment universe with low index representation
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
EMBI GD index = +10%
Venezuela +53%
Belize -36%
Wide range of returns available through active management (2016)
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Fixed income investment philosophy
23
Macro top down Credit focus Value driven Active management Liquidity obsessed
• Forward looking
analysis of:
economics
politics
interest rates
currencies
• Global and local
markets
• Credit risk analysis
ability to pay
(financial
analysis &
policy analysis)
willingness to
pay (local
politics)
• ESG integration
• Scenario planning
• Identifying
divergence between
market prices and
credit risk
• Tolerance for mark-
to-market volatility
• In-house
fundamental
research
capabilities within
portfolio
management teams
• Focus on exploiting
the structural
inefficiencies and
changes in
Emerging Markets
instruments
• Robust risk
management
culture
• Understanding of
liquidity is integral
to every investment
decision
• Local market
liquidity is
important
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Fixed income investment committee process
24
Market exposure: add vs reduce Long-term and tactical views
Global macro overview Risk call
Country / corporate updates
Country and corporate credit review Impact on credit risk, FX and interest rates ESG integration
Updated credit views
Theme relative value
Risks and opportunities across themes: External vs local currency Corporate vs sovereign
Theme allocation
Portfolio construction
Changes in target exposures (credits, FX, duration) across model portfolios
Revision of theme allocation, cash and leverage where appropriate
Changes to model portfolios
Instrument selection
Buy and sell decisions on specific assets
Investment decisions
Execution process
Timely execution (within 24 hours of IC meeting) with review in subsequent IC meeting
Execution
Investment
Committee
(IC)
Sub-committee
meetings
Trading / execution
• Local Currency
• External Debt
• Corporate Debt
• Blended Debt
• Multi-asset
• Long investment track
record: consistent process
since 1992
• Weekly meeting to
implement the investment
philosophy
• Six IC members
- Chairman
- Deputy Chairman
- theme desk heads
- Head of research
- Head of multi-asset
• All fixed income investment
team members can
participate (28 in total)
• Collective responsibility, not
a ‘star culture’
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Country/macro overview
• Oil exporter, experienced strong terms of trade shock in 2014/15
• Commitment to a dollarised economy
Ability to pay
• Lower oil price required a severe fiscal adjustment
• Infrastructure investment (hydro power) is now reducing reliance
on energy imports
• Current account now in surplus
• Significant proportion of funding raised in markets or through
counterparty loans e.g. China
Willingness to pay
• President Correa reacted well to external shock in 2014:
- cut public expenditures and raised taxes
- made peace with the IMF and got China’s support
• New Moreno administration continues with orthodox policy and
makes overtures to private sector
Active management of Ecuador bonds
25
External debt investment example
Ecuador
Source: Ashmore (SICAV SDF), JP Morgan
0
200
400
600
800
1000
1200
1400
1600
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
Active position (lhs) EMBI HY spread (bps, rhs) EMBI Ecuador spread (bps, rhs)
Value opportunity
• High carry available and offered significant value relative to other
HY countries, e.g. Ukraine, Iraq and Zambia
• IC added risk in periods of unjustified market weakness
• Participated in new issues at attractive levels, e.g. 10.75% yield
• Significant contribution to Ashmore’s external debt alpha since
end-2014
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• H1 2015: underweight local currency in blended debt portfolios
• Global macro view: Fed was signalling rate hike, but US economy
still fragile and market was very long USD
• Relative value:
- local currency bonds had cheapened vs US curve
- EMFX had overshot on fears of China outflows
• Scenario analysis: Most probable Fed hike scenarios suggested
USD weakness against EMFX
• IC decision: Maintain overweight duration in local currency bonds
and cover underweight EMFX
• Actively acquiring risk generates significant outperformance
- As at Sep16: blended debt portfolios had returned +20.9% gross
over one year vs +14.2% for benchmark
- As at Mar17: blended debt portfolios had returned +14.7% gross
over one year vs +6.7% for benchmark
Active management of Blended debt theme allocations
26
Blended debt investment example
Allocation to local currency
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16
Subsequent GBI-EM 3-month cumulative returns (rhs)
EM FX exposure (% NAV, LHS)
0%
10%
20%
30%
40%
50%
60%
Dec-1
4
Ma
r-15
Jun
-15
Se
p-1
5
Dec-1
5
Ma
r-16
Jun
-16
Se
p-1
6Ble
nded d
ebt
SIC
AV
allo
catio
ns
External debt Local currency Corporate debt
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Company overview
• Brazilian integrated oil & gas company
• Undertook significant borrowing 2007-2014 to fund offshore
E&P programmes
• Faced increasing domestic challenges…
- structural pricing issues
- government agenda
- Lava Jato (‘car wash’) corruption scandal
- weak Brazilian economy & political transition
• …and global/commodity downturn from mid-2014
Investment analysis & outcome
• Key investment considerations in Q3 2015:
- government ownership and strategic role
- new management plan on capex and asset rationalisation
- market access for ongoing funding
• Active management of position
• Entered HY benchmark Sep’15 at 300bps, rising to 530bps
• Bonds returned +37% in 2016 vs +16% CEMBI BD HY
• Curve positioning and new issuance selection added 100bp
alpha to modest overweight
Value opportunity in Brazil
27
Corporate debt investment example
Petrobras
Source: Ashmore, Petrobras, Citigroup, NYMEX, JP Morgan
0
20
40
60
80
100
120
0
200
400
600
800
1000
1200
1400
Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
US
D
bps
Petrobras/Brazil spread (lhs) Petrobras 2024 6.25% z-spread (lhs)
Brazil z-spread (lhs) WTI future (rhs)
Petrobras strategic plan targets reduction in net debt/EBITDA
2.5x by 2018
0.4
5.3
4.1 3.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Q1'1
7
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Company overview
• Privately owned commercial bank operating through 67 branches in
the Moscow region
• 10th largest Russian bank by assets
• Well funded with 91% loan/deposit ratio
Investment analysis & outcome
• Issued first USD bond in 2013 (5-year senior)
• Followed with 5-year subordinated bond issue
- additional risks not compensated by spread over the senior
• Bonds sold off in late 2014 and then recovered, however
subordinated bonds lagged the seniors
• Spread ratio (sub/senior) in mid-2015 was 1.6x
- premium to pre-crisis (1.4x) and other Russian banks (1.3x-1.4x)
• Monthly Central Bank data showed regulatory capital was robust
and rising, so IC decided to invest in the subordinated bonds
• Bank tendered the subordinated bonds in March 2017 at a premium
to par
• Total investment return of 21.5% vs 6.4% benchmark (CEMBI BD)
Opportunity in subordinated bonds
28
Corporate debt investment example
Credit Bank of Moscow
Significant price performance vs senior bonds
Source: Ashmore, Citigroup
40
50
60
70
80
90
100
110
120
Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16
% o
f par
Seniors Subs
1.0x
1.1x
1.2x
1.3x
1.4x
1.5x
1.6x
1.7x
1.8x
1.9x
2.0x
0
500
1,000
1,500
2,000
2,500
3,000
Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16
Spre
ad (
bps)
Seniors (lhs) Subs (lhs) Sub/Senior spread ratio 90d moving avg (rhs)
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
29
Equities investment committee process
• Long investment track record in EM
equities, from 1993
• Weekly meetings to implement the
investment philosophy
• Four Equities IC members
- Chairman
- Head of frontier equity
- Head of small cap equity
- Head of global equity
• Sub-IC meetings chaired by
respective Heads of strategy, and all
equity investment team members
participate
• Collective responsibility, not a ‘star
culture’
Equities
Investment
Committee (IC)
Sub-committee
meetings
• Frontier
equity
• Small cap
equity
• Global
equity
Governance and oversight
Set strategy and policies for all equity products Monitor performance and compliance
Global overview of macro-economic and market trends
Consider relevant ESG factors
Review process
Investment ideas
Portfolio construction
Minutes of prior IC meeting Transactions Portfolios
Relevant analysis including ESG factors Opportunities for further research
Reflect investment theses, top-down and bottom-up Liquidity
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Largely undiscovered set of countries pursuing structural changes
- reforms can run independently of global macro events
- many will grow to become ‘Emerging Markets’, and universe evolves
with new markets such as Iran, Venezuela, Georgia
• Attractive growth profile supported by young, growing population and low
penetration of goods and services
- approximately one billion people (15% of world population) live in
Frontier Markets
• Economic environments are ripe for quality management teams to drive
growth in returns and valuations
- corporate quality varies significantly (ESG, management team,
business model)
• Price inefficiencies provide great opportunities for a fundamental
research-driven active manager
- thin sell-side coverage (average 8 analysts/stock vs 20 in EM)
- local retail investors dominate trading activity
- less liquid markets
30
Frontier equities
Attractive forward PER
8
9
10
11
12
13
14
15
16
17
18
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
MSCI FM MSCI EM MSCI ACWI
Source: Ashmore, Bloomberg, IMF, World Federation of Exchanges, World Bank
Frontier equities composite, gross of fees, as at 31 May 2017. Returns greater than one year are annualised
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2017 YTD 1yr 3yrs 5yrs Since inception
Ashmore Frontier equities MSCI Frontier
Strong Frontier equities investment performance
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Ashmore has a long history of investing in Frontier Markets,
including Africa (since 1993) and Middle East (since 2004)
• Team of eight dedicated investment professionals, interacting with
other Ashmore global and local investment committees e.g. FX
views informed by fixed income investment committee
• Research-focused, active investment process identifies mispricing
relative to fair value
- predominantly own undervalued, high quality businesses that
operate successfully under most conditions and can thrive in
structurally improving conditions
• Weekly meeting to debate research ideas and portfolio construction
- consistent, repeatable process delivers a diverse portfolio of
high-conviction ideas
• Liquidity risk is as important as macro and stock-specific risks
- small proportion of portfolio (<20%) in less liquid stocks
- portfolio construction allows for AuM growth, i.e. no need to
change ‘best ideas’ as fund grows
Active management, high-conviction ideas
31
Frontier equities investment process
Source: Ashmore SICAV EM Frontier Equity Fund, as at 31 March 2017
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Fu
nd a
ctive w
eig
ht
UAE
Pakistan
Georgia
Romania
Morocco
Kuwait
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Company overview
• Leading dairy company in Vietnam, ex state-owned company
• Significant defendable competitive advantages with dominant
market shares through strong positions in distributional channels
and store space
• Superior profitability versus competitors
Investment opportunity
• Excellent growth story through rising annual dairy consumption,
from c. 25kg/capita vs 50kg/capita in China and 100kg/capita
world average
• Milk formula prices are regulated for VDP, meaning a potential
+30% price increase on 20% of production volume
• Short-term risk of higher input prices
• Trades on 19.5x forward PER, versus 35x for Asian peers with
similar structural growth but weaker competitive positions
32
Frontier equities investment example
Vietnam: Vietnam Dairy Products
Vietnam dairy market growing rapidly
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Mark
et valu
e, U
SD
bn
Source: Bloomberg, EU-Vietnam Business Network
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
33
Source: APCMA, Topline Research, State Bank of Pakistan, CPEC
Frontier equities investment example
Pakistan: DG Khan Cement
0
5
10
15
20
25
30
35
40
45
50
FY12 FY13 FY14 FY15 FY16 FY17E FY18E FY19E FY20E FY21E
To
nnes (
m)
Local annual cement dispatches growing rapidly
China-Pakistan FDI could boost demand further
Company overview
• High-quality cement producer and distributor benefiting from
structural changes in Pakistan:
- improved security
- more power capacity with greater reliability
- engagement with neighbouring nations leading to
increased FDI, e.g. China-Pakistan Economic Corridor
Investment opportunity
• Local demand for cement at record levels and rising, aided by
GDP growth (2017) of 5.7%, the highest in a decade
• DG Khan investing in a 60% capacity increase coming on line
by 2018
• While good cost control drives operating margins higher
• Attractive valuation:
- only 7.0x adjusted EV/EBITDA despite forecast EBITDA
CAGR of 19.4% for FY2016 to FY2019
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17E
FY
18E
FY
19E
FY
20E
CP
EC
(20yrs
)
CP
EC
(15yrs
)
CP
EC
(10yrs
)
US
D b
n
Distribution
Christoph Hofmann, Global Head of Distribution
34
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Phase 1: establish Emerging Markets asset class
- significant growth opportunity from raising institutional allocations
from underweight levels
- large part of Ashmore’s institutional client base is serviced through
direct relationships
• Phase 2: diversify developed world capital sources and themes
- broadly stable client mix has been maintained across market
cycles
- bias towards institutional clients (89% AuM) but growing
diversification of AuM from intermediary (retail) clients
- competitive landscape does not present same challenges as
Developed Markets, e.g. passive funds
• Phase 3: mobilise Emerging Markets capital
- 34% of AuM from clients domiciled in Emerging Markets
High-quality, diversified client base
35
Distribution in strategic context
Broad-based distribution capabilities
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016Central banks Sovereign wealth fundsGovernments Pension plansCorporates/Financial institutions Funds/sub-advisersThird-party intermediaries Foundations/Endowments/Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016
Europe UK Americas Asia Pacific Middle East & AfricaCharts represent % AuM by client type/location as at 31 December 2016
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Significant proportion of institutional client base is serviced through
direct relationships
- more than 2/3rds of institutional AuM has a direct relationship,
especially government-related clients
- supported by initiatives such as Cass Business School course
- however, consultants occasionally acting behind scenes, e.g.
asset allocation
- certain client segments, e.g. UK pension schemes, are heavy
users of consultants
• Average client tenure (by AuM) increased from 5.1 years in 2014 to
6.0 years in 2016
- more of the client base has experienced Emerging Markets cycles
and the value opportunities that arise
- Ashmore’s investment processes can produce short-term
underperformance; if a client has ‘seen it before’ then more willing
to maintain or add exposure
• Significant potential for cross-selling as clients discover breadth of
Emerging Markets asset classes
- typical broadening of exposure: external debt to blended debt
- equity vs fixed income
Increasing tenure of AuM
36
Increasing length of client relationships
AuM managed in segregated accounts or white label products
As at December
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
<3yrs 3yrs-7yrs >7yrs
2014 2015 2016
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Trend of rising allocations to Emerging Markets “paused” post 2013
but regaining strength now
• Actual and/or target allocations still at low levels
- average ~4% allocated to EM fixed income and ~7% to EM
equities
• Significant long-term AuM growth opportunity as allocations rise
towards representative levels
- MSCI EM index represents 10% of world market cap
- EM represents 14% of BAML World Sovereign Bond Index
- new index definitions use more representative allocations, e.g. JP
Morgan Global Aggregate Bond Index has 20% EM weight
• Some target allocations have reduced over this cycle, and some
institutions are underweight versus own target
- short-term AuM growth opportunity as EM continues to deliver
outperformance and institutions move back to target weights
• Longer term, based on c.USD 75 trillion DM institutional AuM, every
1% increase in allocation is USD 750 billion to be invested in
Emerging Markets
Pension fund allocations to EM equities (%)
37
Significant growth potential through raising institutional
allocations from underweight levels
Pension fund allocations to EM debt (%)
Source: Towers Watson, pension fund annual reports, BAML, JP Morgan
Points on chart represent specific US / European pension fund allocations to EM debt or EM equities
0
2
4
6
8
10
12
14
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Average
0
1
2
3
4
5
6
7
8
9
10
2008 2009 2010 2011 2012 2013 2014 2015 2016
Average
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Discussions commenced mid-2015
• New allocation to Emerging Markets debt
- included within high yield liquid securities allocation
• Consultant-led tender process:
- 50 managers initially
- shortlist of six
- Ashmore successfully participated in finals pitch with one other
manager
New blended debt mandate
38
Client case study
UK public pension plan
Client Type UK public pension plan
Client total AuM GBP 15 billion
EMD allocation ~2%-3%
EMD allocation to Ashmore ~1.5%-2%
Relationship inception 2017
Mandate Blended debt, segregated
account
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Long-standing external debt client
• Client interested in broadening investment to blended debt, to
capture a ‘best ideas’ portfolio of external debt + local currency +
corporate debt
• Competitive tender process
• Client staff led search but strong involvement of consultant
• Long lead time: process took two years, partially slowed down by EM
volatility during the period
Transition from external debt to blended debt
39
Client case study
US public pension plan
Client Type US public pension plan
Client total AuM USD 30-35 billion
EMD allocation ~4%
EMD allocation to Ashmore ~1.5%
Relationship inception 2006
Mandate External debt transitioned to
blended debt, segregated
account
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Long-standing client
• Makes tactical changes to corporate debt allocation
• Reduced exposure in Q3 2016, taking some profits
• Market was weaker in Q4 2016, started to add again and continued
in Q1 2017
• Overall allocation has increased
- recent allocations are approximately 2x the redemptions
Tactical allocations to corporate debt
40
Client case study
EM private pension plan
Client Type EM private pension plan
Client total AuM USD 45 billion
EMD allocation ~4%
EMD allocation to Ashmore ~0.5%
Relationship inception 2013
Mandate Corporate debt SICAV
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Ashmore has significant competitive advantages:
- extensive network of contacts across broad range of
Emerging Markets
- consistent investment processes proven over 25 years
across wide range of market conditions
- strong investment performance track record, against
benchmarks and peer group
- investment processes supported by local office network
combined with country visits
- dedicated legal and risk management teams
• There are few, if any, pure Emerging Markets specialists
• Types of competitors:
- specialist fixed income managers with significant EM
presence
- cross-over fixed income managers; in and out of EM
- new entrants
- (semi)passive / ETFs
• Issuers & counterparties know the difference between
Ashmore (‘permanently in EM’) and cross-over investors
Source: evestment data to 31 March 2017
Ashmore has a strong competitive position
41
No. funds
tracked
Quartile rank
1yr
Quartile rank
3yrs
Quartile rank
5yrs
External
debt 79 1 1 1
Local
currency 34 1 1 2
Corporate
debt 20 1 3 2
Blended
debt 38 1 1 1
Small cap
equities 20 1 2 3
Frontier
equities 12 2 2 3
Ashmore’s funds well placed versus peer group
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Americas, 36%
Asia Pacific, 20%
Europe ex UK, 26%
UK, 18%
• Strategic objective to increase scale of retail AuM sourced through intermediaries
- diversifies revenue sources
- higher net management fee margins vs institutional products
- can be uncorrelated with institutional flows
• EM funds grew from USD315bn to USD637bn over past nine years
- EM equity funds USD416bn, of which 60% in the US
EM debt funds USD221bn, of which 75% outside the US
- return to 10% p.a. growth rate implies USD64bn annual growth opportunity for
the industry
• Diversified intermediary relationships established
Diversified relationships by type…
42
Diversified intermediary relationships in Europe, US and Asia
Private bank, 40%
Sub-advised fund, 29%
Wealth manager, 8%
Platform, 5%
Wirehouse brokerage, 4%
Trust, 4% RIA/IFA, 4%
Fund of funds, 3% Individuals, 3% Other, 1%
…and geography US Europe Asia
Intermediaries • Wirehouses
• Private banks
• RIAs
• Trusts
• Sub-advisers
• Private banks
• Platforms
• Wealth
managers
• Fund of funds
• Sub-advisers
• Private banks
• Wealth
managers
AuM USD 2.2bn USD 2.7bn USD 1.2bn
Products • Specialist equities
• Short duration
• Fixed duration
• Blended debt
• Short duration
• Fixed duration
• Blended debt
• Local currency
• Fixed duration
• Multi-asset
Data as at 31 March 2017
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Intermediary-sourced AuM has been broadly stable at ~10%
of Group AuM since 2010
• However, underlying business mix has changed dramatically:
expected redemptions from Japanese funds raised in 2010
and 2011 has been replaced with flows from US, Europe and
rest of Asia
• Underlying strong growth in AuM from intermediary clients in
Europe, US and rest of Asia
• Increasing the size and reach of the intermediary distribution
network has mitigated the impact of weak sentiment towards
EM since 2013
Strong underlying growth in Europe, US and Asia ex Japan
43
Capturing the intermediary growth opportunity
0%
2%
4%
6%
8%
10%
12%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2010 2011 2012 2013 2014 2015 2016 Q3'17
% o
f G
roup A
uM
Inte
rmedia
ry A
uM
(U
SD
bn)
Europe, US, Rest of Asia (lhs) Japan (lhs) Europe, US, Rest of Asia (rhs)
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Short duration fund launched in response to investors looking
for yield but concerned about interest rate risk
• Targeting global wealth platforms as well as institutional clients
• One of the best performing EM debt funds
- since inception: +10.3% gross annualised vs +3.5%
benchmark
- 2016: +23.6% gross vs +6.1% benchmark
• Significant growth in AuM, driven by intermediary clients
- 69% of AuM is retail intermediary
- strong demand in Europe and Asia Pacific, decent traction
in US
44
Intermediary case study
Short duration
Significant growth in Short Duration AuM
-
400
800
1,200
1,600
Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16
AuM
(U
SD
m)
Investment
Universe
• Short term Emerging Market debt securities
• Corporates and sovereigns/quasi-sovereigns
• All USD/G7-denominated, no local currency
• Duration: 1-3 years
Reporting
Benchmark
• Primary: JP Morgan CEMBI BD 1-3yr Index
• Secondary: BoAML 1-3yr Treasury Index
Launch date • June 2014
Fund
structure
• Luxembourg-domiciled, UCITS V-compliant SICAV
• US 1940 Act mutual fund
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
45
Current opportunities and challenges
Opportunities Challenges Ashmore response
Renewed interest in Emerging Markets from
institutional and retail investors
Confusion between risk
and volatility
• Ongoing education about opportunities in
inefficient EM asset classes
• Deliver superior returns from value-based
investment processes
Underweight investors: Emerging Markets
generate 58% of global GDP and 10%-20%
of indices, yet <10% allocation
‘De-risking’ of pension
assets, especially UK
• Provide access to full range of EM risk and
return profiles, e.g. investment grade credit
Poor value in Developed Markets fixed
income: low/negative yields with rising rates
Developing regulatory
framework, e.g. MiFID2,
DOL fiduciary rules
• “Fact of life”
Strong returns and significant
outperformance being delivered across
Ashmore’s investment themes
Fee pressure from
passive mandates
• Education: majority of EM securities are
not represented in benchmark indices
• Deliver outperformance through active
asset management
External debt, especially short duration,
remains popular for risk-averse clients
Increased competition
from new entrants
• Strong credentials of a specialist, active
manager with long and successful
investment track records
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Conclusion
46
• Significant organic growth opportunity from increasing EM allocations
• Ashmore has a strong competitive position
• Intermediary business offers growth and diversification potential
• Ashmore well-positioned to benefit from growth opportunities in Emerging Markets
Local fund management
Tom Shippey, Group Finance Director
47
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Local fund management network offers diversification and
access to rapidly-growing markets
48
• A key strategic initiative is to develop a network of local asset
management platforms to capture domestic flows
• Local offices…
include distribution, independent investment committees and
appropriate middle office/support functions
benefit from the support & resources of a global firm, e.g.
common IT and seed capital, while providing competitive
advantages through local knowledge
make a positive and growing contribution to Group profits, with
significant operating leverage as AuM increase
• Business model and ownership structure tailored to each market
opportunity
seek local employees/partners with cultural fit and alignment of
interests through equity
• Global investors can access the local investment management
capabilities
• Resolved challenges in Brazil (closed), Turkey (sold) and China
(restructured), providing capacity to consider new markets
Broad network of local asset management platforms
Local asset management platform
Distribution office
Ashmore Group, 31 March 2017 Local Global
AuM (USD bn) 2.4 53.5
Countries 7 4
Employees 67 180
o/w investment professionals 35 43
Seed capital (GBP million) 66 180
Global asset management platform
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Platform established in 2012
• Launched three funds in 2013 with USD 75m of Group seed
capital support
• Total 19 local employees, with experienced team of nine
investment professionals
• Ashmore is 67% shareholder, remainder owned by founding
partners/employees
• Broad range of equity and fixed income products managed by
fundamental research-driven investment processes
• Strong investment performance
• Rapid growth to USD 1bn AuM
- local institutional and intermediated client flows
- global client allocations
- top 10 domestic equity manager
- majority of Group’s seed capital has been redeemed
• Money market fund launched in 2016 with seeding by local
balance sheet
• Positive contribution to Group operating profits, operating
margin now approaching Group level
49
Indonesia case study
Rapid growth in assets under management
Strong investment performance
0%
10%
20%
30%
40%
50%
60%
Equity small cap Equity all cap Local currency
Ashmore Benchmark
Gross cumulative performance since fund inception to 28 April 2017
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2013 2014 2015 2016 Mar 2017
AuM (IDR bn, lhs)
Business model
Tom Shippey, Group Finance Director
50
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
51
Ashmore has a robust and flexible business model
High-return, diversified Emerging
Markets investment themes
Political, social and economic
convergence trends
Investors are heavily underweight
Emerging Markets
Specialist focus
Active management
Cost discipline
Flexible remuneration policy
Scalable operating platform
Strong, liquid balance sheet
Active seed capital programme
Strong long-term investment
performance for clients
• Significant alpha over market cycles
• 82% AuM outperforming over three years
Alignment of interests through
employee equity ownership
• Long-dated equity awards
• Employees own ~47% of shares
Value for shareholders
• 66% adjusted EBITDA margin
• Strong cash generation
• Progressive dividends
Diversified client base
x =
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Fee income dominated by management fees from a
diversified set of investment themes
• Cost structure provides a high degree of flexibility
• Fixed costs kept flat over past three years, with reduction in
global cost base to support investment in growing local
platforms
• Adjusted EBITDA margin maintained above 60%
• Positive operating leverage demonstrated in H1 2017:
- adjusted EBITDA margin increased from 63% to 66% YoY
with 25% growth in revenues
High-quality, diversified revenues and cost discipline deliver high
profit margin
52
Revenues driven by diversified management fee income
Cost discipline has maintained profit margin at high level
2017 is consensus estimates
100
150
200
250
300
350
400
0
50
100
150
200
2012 2013 2014 2015 2016 2017c
Fixed costs (£m, lhs) VC (£m, lhs)
Adj EBITDA margin (%, lhs) Total revenues (£m, rhs)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H1 2017
Overlay/liquidity
Multi-asset
Alternatives
Equities
Corporate debt
Performance fees
Local currency
External debt
Blended debt
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Principal features:
- salaries capped to minimise fixed costs
- single profit-based VC pool, capped at 25% of pre-bonus profit
- mandatory equity component with ability to increase equity
exposure by voluntarily commuting cash
- further alignment through significant deferral: five-year cliff vest,
with ordinary dividend eligibility
- Employee Benefit Trust (EBT) purchases shares to avoid dilution
• Average length of senior employee service in Global businesses is
10 years
* Earnings before variable compensation, interest and tax
Variable compensation as % of EBVCIT*
18%
14%
18% 19%
18% 20% 20%
18.5% 20%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Equity incentivisation (based on VC of £100)
Simple, distinctive and effective remuneration philosophy
delivering retention and alignment of interests
53
£30
£60
£40
£40
£60
0 50 100 150
Switch & match
Initial Cash
Restricted shares
Bonus and matchingshares fromcommuted cash
£100
£130
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues YoY Bonus pool YoY
Strong link between performance and variable remuneration
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Business model converts operating profits to cash (110%
cumulative conversion since IPO)
• Cash balance has been broadly stable for seven years
(±£350m)
• Principal uses of cash flow are:
- ordinary dividends to shareholders
- share purchases to satisfy employee equity awards
- taxation
- seed capital investments
- M&A
• Progressive dividend policy
- since 2007, £876m returned to shareholders through
ordinary dividends
- equivalent to 67% of attributable profits over the period
Progressive capital distribution via ordinary dividends
Strong cash generation
54
Stable cash, investment in seed capital
0
200
400
600
800
1,000
1,200
1,400
2008 2009 2010 2011 2012 2013 2014 2015 2016
Cu
mu
lati
ve, £
m
Attributable profit Dividends paid
0
100
200
300
400
500
600
700
2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017
Cash excluding consolidated funds (£m) Seed capital (market value, £m)
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Strong, liquid balance sheet benefits clients and shareholders
through the cycle
- no debt
- high-quality financial resources: £609m of tier 1 equity
capital
- liquid assets represent 83% of total balance sheet
- capacity to invest in seed capital for future growth
- confers strategic flexibility, e.g. to consider M&A
- progressive dividend policy
Regulatory capital
• Ashmore is supervised on a consolidated basis under a P3
licence
- the Group’s two principal FCA-regulated entities are both
limited licence BIPRU €50k firms
• Regulatory capital requirement is determined annually through
the ICAAP
- Ashmore assesses how much regulatory capital it requires
- Pillar 3 disclosures provide detailed information
Substantial financial resources
Balance sheet strength
55
Source: Pillar 3 disclosures and Group consolidated financial statements
65.6 87.0 72.9 94.4 99.9 99.9
447.4
540.0 538.6 579.8 590.8 609.2
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016 H1 2017
Total Pillar 2 requirement (£m) Financial resources (£m)
Market risk
Credit risk
Operational risk
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Objective to grow third-party AuM to deliver diversified fee
income
9% of Group AuM is in seeded funds, which generate 16%
of Group net management fees
• Seed capital represents 38% of net tangible equity
- strict monitoring, exposure thresholds set by Board
• Typical objectives when seeding a fund:
establish an investment track record
enhance marketability of new and existing share classes
provide initial support to local fund management platform
• Investment returns are an important but secondary objective
• Actively-managed programme, with recycling of funds when
seeding objectives achieved
- on average, two-thirds of invested capital is recycled every
year
Active management of seed capital
Actively-managed seed capital programme delivers AuM growth
and diversifies revenues
56
Seed capital by theme (% of £233.4m market value)
0
100
200
300
400
500
600
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
£m
Seed capital (invested cost) Cumulative seed recycled Cumulative seed invested
5%
6%
8%
32% 21%
18%
10%
External debt
Local currency
Corporate debt
Blended debt
Equities
Alternatives
Multi-asset
As at 31 December 2016
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Seed capital committed to establish track records in SICAV
and US 1940 Act mutual funds
- USD 10m committed to both funds in 2014
- additional USD 40m committed to US fund in 2016 to
provide scale for intermediaries
• Active management of positions, with daily monitoring
- growth in AuM enabled realisations to start in late 2015
(SICAV) and late 2016 (US)
• All seed commitments have now been redeemed
- short duration AuM of USD 1.4bn
- total market return on seed commitments of 18% in USD
terms
57
Seed capital case study
Supporting growth in short duration funds
Seed capital helps deliver significant AuM growth
-
400
800
1,200
1,600
Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16
AuM
(U
SD
m)
USD
20m
USD
40m
USD
60m
USD
2m
USD
8.5m
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
• Industry backdrop of rising regulatory workload
MiFID2
• Broad implications for fixed income markets, including
- pre- and post-trade transparency
- trade reporting
- new infrastructure required to process payments
• Discussions with research counterparties ongoing
- Ashmore’s investment processes have a bias towards in-
house research and analysis
FCA market study
• Ongoing, final report and remedies due in 2017
Brexit
• Main uncertainty is passporting
• Wide range of possible outcomes, but expect operational impact
to be manageable
AuM by client type and location
Well-positioned to deal with developing regulatory landscape
58
89%
11%
Institutional
Retail
8%
27%
22%
21%
22% UK
Other Europe
Americas
Asia Pacific
Middle East & Africa
As at 31 March 2017
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
59
A specialist active manager of Emerging Markets assets
EMERGING MARKETS FUNDAMENTALS UNDERPIN LONG-TERM GROWTH
• EM accounts for majority of world’s population (85%), FX reserves (66%), GDP (58%)
• High growth potential: social, political and economic convergence trends with DM
• Large, liquid, diverse investment universe
• Investors are underweight, typically <10% allocations vs15-20% EM weight in global indices
LONG-STANDING INVESTMENT APPROACH DELIVERS OUTPERFORMANCE
• Deep understanding of EM underpins an active, value-based investment philosophy
• Investment committees, not a star culture
• Track record extends over more than 25 years
DISTINCTIVE STRATEGY & EFFECTIVE BUSINESS MODEL
• Three phase strategy to capture value from long-term EM growth trends
• Remuneration philosophy aligns interests and provides flexibility through profit cycles
• Disciplined cost control delivers a high profit margin
• Scalable operating platform, 246 employees in 11 countries
• Network of local EM fund management platforms
• Strong balance sheet supports commercial and strategic initiatives, e.g. seed capital
DIVERSIFIED HIGH-QUALITY CLIENT BASE
• Global client base diversified by type and location
• Approximately 1/3rd of AuM sourced from EM-domiciled clients
Q&A
60
Appendix
61
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Source: Ashmore (un-audited), JP Morgan, Morgan Stanley
- Returns gross of fees, dividends reinvested.
- Annualised performance shown for periods greater than one year.
- All relevant Ashmore Group managed funds globally that have a
benchmark reference point have been included in each sub-theme
example; specifically this excludes Alternatives and Multi-asset funds
Benchmarks
External debt Broad JPM EMBI GD
External debt Sovereign JPM EMBI GD
External debt Sovereign IG JPM EMBI GD IG
Local currency Bonds JPM GBI-EM GD
Blended debt 50% EMBI GD
25% GBI-EM GD
25% ELMI+
Corporate debt Broad JPM CEMBI BD
Corporate debt HY JPM CEMBI BD NIG
Corporate debt IG JPM CEMBI BD IG
Global equities MSCI EM net
Global small cap MSCI EM Small Cap
Frontier MSCI FM net
Summary of investment performance
62
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Mark Coombs, Chief Executive Officer of Ashmore Group plc and Chairman of the Fixed income, Alternatives and Asset allocation Investment Committees. Mark
has been involved in Emerging Markets since joining Grindlays Bank plc in 1983 and led Ashmore’s buyout from Australia and New Zealand Banking Group (ANZ)
in early 1999. He was appointed to the Board of Emerging Markets Trade Association in 1993 and Co-Chair in 2001. Mark holds an MA (Hons) in Law from
Cambridge University.
Jan Dehn, Global Head of Research and a member of the Fixed income and Asset allocation Investment Committees. He joined Ashmore in 2005. Jan has
extensive experience of trading Emerging Markets sovereign external debt, local currency bonds, FX, corporate bonds and Frontier Markets. He joined Ashmore
from Credit Suisse First Boston, where he worked as a sovereign fixed income analyst covering Latin America, mainly out of New York. He has also covered
Eastern European, South African and Mexican markets in a local currency strategy role. Jan worked as a consultant to the World Bank's research department in
Washington D.C. on public expenditure issues and commodity shocks. He served for two years as an ODI Fellow in the Ministry of Finance and Economic
Development in Uganda. Jan holds a Doctorate in Economics from Oxford University, a Masters Degree in Quantitative Development Economics from Warwick
University and a Bachelors Degree in Economics from Sussex University. He lived for several years in East Africa as a child, where his parents worked for various
development agencies and has also lived in the Caribbean. He is a fully qualified wooden shipwright.
Robin Forrest, Head of Corporate Debt and a member of the Fixed income and Asset allocation Investment Committees. He joined Ashmore in 2006 after 13 years
at JP Morgan where he had a focus on credit intensive corporate situations in CEEMEA geographies. Prior to this, he had broad experience across capital markets
in origination, structuring, execution, syndication, risk management and credit within loan and high yield markets and in Emerging Markets. Robin has a BA (Hons)
in Russian & French from the University of Oxford.
Biographies
63
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Alexis de Mones, Portfolio Manager, joined Ashmore's fixed income team in 2012. Alexis started his career in 1997 at Morgan Stanley as an Emerging Markets
sovereign credit analyst covering EMEA. In this capacity Alexis notably advised Middle Eastern and Central Asian sovereigns and corporates on their credit ratings
and access to the capital markets. From 2002 onwards, Alexis managed Emerging Markets and Global fixed income portfolios at Morgan Stanley, ABN Amro and
BlackRock where he was lead investment strategist for the Global Bonds product. Alexis holds a Masters in Public Policy from Harvard University and an Honours
Degree in Business from EDHEC in France.
Andrew Brudenell, Portfolio Manager and Head of Frontier Markets investment team, joined Ashmore in December 2015. Prior to joining Ashmore, Andrew was
head of the Global Frontier Equity Strategy, and Lead portfolio manager at HSBC Global Asset Management. He has been in the investment industry since 1997
and has over nine years of investing experience in Frontier Markets. Prior to joining HSBC, he worked as a US fund manager at Scudder Investments and as an
Asia Pacific equities analyst and Global equities portfolio manager at Deutsche Asset Management. He holds an MSc from the London School of Economics and is
a CFA charter holder.
Christoph Hofmann, Global Head of Distribution, joined Ashmore in 2010 and is responsible for sales, marketing and client servicing for the firm’s institutional and
retail clients globally. Prior to joining Ashmore he spent the 12+ years at PIMCO Advisors / Allianz Global Investors where he held various management positions,
both in the U.S. and Europe. Most recently Christoph was Head of Business Development – Equity Products with responsibility for distributing the firm’s equity
products. Prior to that he was Chief Operating Officer Global Retail Division, Director of Closed-end fund products, and Head of Offshore Mutual fund sales. Prior to
joining PIMCO, Christoph was associated with McKinsey & Co and Nestle. He graduated from the Technical University of Berlin with a Masters of Business
Administration (Diplom-Kaufmann). Christoph is a CFA Charterholder.
Tom Shippey, Group Finance Director. Prior to joining Ashmore in 2007, Tom worked for UBS Investment Bank, including advising on the Ashmore IPO in 2006.
Tom qualified as a Chartered Accountant with PricewaterhouseCoopers in 1999 and is a Fellow of the ICAEW. He has a BSc in International Business and German
from Aston University.
Biographies
64
R: 0
G: 41
B: 91
R: 0
G: 174
B: 226
R: 152
G: 152
B: 156
R: 93
G: 92
B: 97
R: 225
G: 160
B: 15
R: 48
G: 144
B: 197
R: 160
G: 1
B: 46
R: 92
G: 146
B: 51
R: 176
G: 194
B: 6
R: 96
G: 187
B: 163
R: 200
G: 98
B: 27
R: 0
G: 127
B: 114
Disclaimer
IMPORTANT INFORMATION This document does not constitute an offer to sell or an invitation to buy shares in Ashmore Group plc or any other invitation or inducement to engage in investment activities. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.
Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The value of investments, and the income from them, may go down as well as up, and is not guaranteed. Past performance cannot be relied on as a guide to future performance. Exchange rate changes may cause the value of overseas investments or investments denominated in different currencies to rise and fall. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statements, which speak only as of the date of this document.
65
